Analysis of Non-Performing Assets(Npas) In Priority Sector: A Comparative Study of Public and Private Sector Banks

ISSN 0974-9977 Analysis of Non-Performing Assets(Npas) In Priority Sector: A Comparative Study of Public and Private Sector Dr. (Mrs.) Paramjit Nanda* Priyanka Mahajan** * Professor in Economics, Punjab School Of Economics, Guru Nanak Dev University, Amritsar 143 005, Punjab, India. ** Research Scholar In Economics, Punjab School Of Economics, Guru Nanak Dev University, Amritsar 143 005, Punjab, India ABSTRACT The present paper is an attempt to study trends in advances and NPAs of priority sector (agriculture and weaker section) of Scheduled Commercial banks (SCBs) (public (27), private banks (31) and foreign banks (31)) during the period 1997-2005, to undertake inter-bank comparison of priority sector advances and NPAs in public and private sector and to know effect of priority sector advances on NPAs in public sector and private sector in 2001 and 2005. The findings of the study reveals that public sector banks witnessed higher Gross NPA to total assets ratio, net NPA to total assets ratio, gross NPAs to gross advances ratio and net NPAs to net advances ratio as compared to private sector banks during period 1997-2005. Regression results indicated that advances to agriculture and weaker section significantly affected NPA in agriculture and weaker section of public sector banks in 2001 as well as in 2005. Study also reveals that priority sector advances play significant role in affecting NPA of public sector banks and efforts should be made for efficient recovery of priority sector loans. For this purpose, there should be proper selection of the borrower. should ensure proper end-use, proper post sanction follow up, regular contact with borrower, regular monitoring of the accounts and hold recovery camps. Key Words : Nationalized banks, Advances, Non-Performing Assets, Scheduled Commercial, Priority Sector 188

INTRODUCTION Rural credit plays an important role in rural development of a nation. In pursuance of rural credit, three pronged strategy was adopted in form of expansion of institutional structure, directed lending and concessional or subsidized credit. But all these efforts while impressive in quantitative terms have not brought about desired results in qualitative terms before 1991. As a result, productivity, efficiency and profitability suffered and non-performing assets increased. There was financial repression. But, during post -1991, financial reforms led to enhanced competition, increased autonomy, technological upgradation, competitive changes and reduction in non- performing assets (NPAs). The present paper is an attempt to study trends in advances and NPAs of priority sector (agriculture and weaker section) of Scheduled Commercial banks (SCBs) (public (27), private banks (31) and foreign banks (31)) during the period 1997-2005, to undertake inter-bank comparison of priority sector advances and NPAs in public and private sector and to know effect of priority sector advances on NPAs in public sector and private sector in 2001 and 2005. Accordingly, the paper has been divided into three sections. Section I examines trends for SCBs, Section II undertakes Inter-bank comparison, while Section III gives empirical results along with conclusions and implications. Data for the above analysis has been taken from Report on Trend and Progress of Banking in India, R.B.I (various issues). Simple regression analysis has been applied to know the effect of priority sector advances on NPAs in the following way. Where Y = NPAs in agriculture, weaker and priority sector. X = Loans in agriculture, weaker and priority sector. It is hypothesised that there exists positive relationship between advances in priority sector and NPAs in priority sector. I TRENDS IN NPAs (i) Growth of Gross and Net NPAs Table 1 showing the trends in gross and net NPAs of different bank groups during the period 1997-98 to 2004-05 reflects the fact that in absolute terms, the gross and net NPAs increased continuously for SCBs and for all bank groups during the period 1997-98 to 2001-02 except foreign banks (these banks registered a decline in net NPAs in 1999-00 and 2000-01). All these banks after reaching a peak level of gross and net NPAs in 2001-02 witnessed a declining trend afterwards. The gross NPAs of SCBs increased from Rs. 50815 crore in 1997-98 to Rs. 70861 crore in 2001-02 with an increase of 39.4 percent, while net NPAs increased by 49.6 percent to Rs. 35,554 crore from Rs. 23,761 crore during the same period. Bank group-wise also, gross 189

NPAs increased for public sector banks, private sector banks (old and private) and foreign banks to Rs. 56,473 crore, Rs. 11662 crore, (Rs. 4851 crore and Rs. 6811 crore), Rs. 2726 crore in 2001-02 over the levels of Rs. 45,653 crore, Rs. 3186 crore (Rs. 2794 crore and Rs. 392 crore), Rs. 1976 crore in 1997-98, with an increase of 23.7 percent, 266 percent (73.6 percent and 1637 percent) and 37 percent. Net NPAs of public sector banks, private sector banks (old and private) and foreign banks increased from Rs. 21,232 crore, Rs. 1,863 crore (Rs. 1572 crore and Rs. 291 crore) and Rs. 666 crore in 1997-98 to Rs. 27,958 crore, Rs. 6676 crore, (Rs. 3013 crore and Rs. 3663 crore) and Rs. 920 crore in 2001-02, thereby experiencing an increase of 31 percent, 258 percent, (91 percent and 1158 percent) and 38 percent during same period. Thus, new private sector banks witnessed steep increase in gross/net NPAs in 2001-02 over 1997-98 due to merger. After 2001-02, due to improvement in asset quality of banks, gross NPAs of new private sector banks decreased rapidly (i.e. by 32.81 percent) followed by foreign banks (19.58 percent) and public sector banks (16.19 percent) in 2004-05 as compared to 2001-02, while net NPAs observed most rapid decrease in case of public sector banks (40.47 percent) followed by old private sector banks (38.58 percent) and foreign banks (29.56 percent) over the same period. SCBs undertook measures like rechedulement restructuring at bank level, corporate debt restructuring recovery through Lok Adalats, Civil Courts and debt recovery tribunals and compromise settlements and enactment of SARFAESI (Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest) etc. (Economic Survey, 2003-04). Regarding contribution of various bank groups, public sector banks constitute large share in gross NPAs (share ranging between 89.84 percent and 78.71 per cent during the period). During the period, share of public sector in gross NPAs declined from 89.84 percent in 1997-98 to 81.17 percent in 2004-05, while of private sector banks (old and new) increased from 6.26 percent (5.49 percent and.77 percent) to 15.06 percent (7.21 percent and 7.84 percent) during the same period and of foreign banks increased marginally from 3.88 percent to 4.46 percent in 2003-04. (ii) Ratio of Gross/Net NPAs to Total Assets Table 2 shows that nationalised banks had highest gross NPAs to asset ratio during the period 1997-98 to 2004-05, followed by SBI bank group(1997-98 to 99-00) and old private sector banks (2000-01 to 2004-05) while net NPAs to asset ratio was highest for old private sector banks followed by nationalised banks during the study period. Gross as well as net NPAs to assets ratio decreased for all bank groups except private sector banks as whole and new private sector banks. The percentage of gross NPAs to total assets decreased from 6.4 percent in 1997-98 to 2.5 percent in 2004-05 in the case of SCBs. The public sector banks, nationalised banks, SBI group and old private banks and foreign banks registered a decline from 7.03, 7.24, 6.67, 5.06 and 3.0 to 2.74, 2.98, 2.49, 3.15 and 1.0 percent during the same period. Private sector banks as group and new private sector banks witnessed fluctuating but increasing trend from 1997-98 to 2000-01 and experienced decline in gross NPA/assets ratio afterwards. 190

The percentage of net NPAs to total assets declined from 3.0 in 1997-98 to 0.91 percent in 2004-05 for SCBs. In case of public sector banks, nationalised banks, SBI bank group, old private sector banks and foreign banks, net NPAs to total assets ratio declined from 3.27 percent, 3.48 percent, 2.89 percent, 2.84 percent and 1.0 percent to 0.99 percent, 0.96 percent, 1.01 percent, 1.39 percent and 0.4 percent during the same period. (iii) Ratio of Gross/Net NPAs to Gross/Net Advances Table 3 reflects the fact that public sector banks had the highest ratio of gross NPAs to gross advances ratio followed by old private banks, new private banks and foreign banks, while old private sector banks had highest ratio of net NPAs to net advances ratio followed by public sector banks, new private banks and foreign banks. During the period (1997-98 to 2004-05), public sector banks witnessed continuously declining trend in gross NPAs to gross advances ratio and in net NPAs to net advances ratio (however SBI witnessed only marginal increase in ratios in 1998-99). Private sector banks (old and new) witnessed fluctuating but increasing trend in both ratios during period 1997-98 to 2001-02, but continuous declining trends from 2001-02 to 2004-05. Private sector banks expects rapid increase in ratios in 2001-02. Gross NPAs as a percentage to Gross Advances decreased from 14.4 in 1997-98 to 5.2 in 2004-05 in the case of Scheduled Commercial, from 16.02 (16.88, 14.57) to 5.53 (5.84, 5.32) in case of public sector banks (nationalised, SBI group) and from 6.4 to 2.8 in case of foreign banks during the same period, whereas they increased from 3.93 (5.06, 1.52) to 4.44 (5.97, 3.59) in the case of private sector banks (old, new) during the same period. Scheduled commercial banks witnessed decline in ratio due to high provisions (upto 40 percent) made for NPAs by them. Net NPAs as a percentage of net advances decreased for SCBs from 7.3 in 1997-98 to 2.00 in 2004-05 and for all bank groups during the same period. TRENDS IN ADVANCES AND NPAs IN PRIORITY SECTOR Domestic banks had been directed to deploy 40 percent of credit to priority sector, as a result, public sector banks and old private sector banks have been deploying about 43 per cent of net bank credit to priority sector in 2001 as well as in 2005 and credit to priority sector increased in 2005 as compared to 2001 (Table 4). As a result, priority sector contribution to NPAs also increased for public sector banks and old private sector banks in 2005 as compared to 2001 and ranging between 33.08 (for old private sector banks) and 46.17 (for nationalised banks) in 2001 and between 42.09 (for old private sector banks) and 51.25 percent (for nationalised banks) in 2005. Sector-wise priority sector advances and NPAs among banks group given in Table 4 shows that public sector banks had a higher share of net bank credit in agriculture, weaker section advances as well as in NPAs in these sectors than private sector banks in 2001 as well as in 2005., With in public sector banks, SBI group had higher share of net bank credit than nationalised banks in agricultural and priority sector advances in 2001 while nationalised banks had higher share in these advances in 2005. In weaker section advances, SBI had higher share in 2001 as well as in 2005. Within private sector banks, old private sector banks had a 191

higher share in agriculture and weaker section advances than new private sector banks in 2001 (in priority sector in 2001 as well as in 2005). Sector-wise NPAs in priority sector given in table shows that within public sector, SBI in 2001 and nationalised banks in 2005 had high share of NPAs in agricultural loans. In weaker sections and priority sector loans, nationalised banks in 2001 and SBI in 2005 had large share in NPAs. Within private sector banks, old private banks had share of NPA in agriculture and priority sector loans in 2001 as well as in 2005. Regarding weaker sections loans, new private sector banks had large share in NPAs in 2001, while old private banks in 2005. II INTER-BANK COMPARISION OF ADVANCES AND NPAs IN PRIORITY SECTOR (a) PUBLIC SECTOR BANKS Advances Trends in advances of various public sector banks given in Tables 5 and 6show that all banks witnessed an increase in advances in 2005 as compared to 2001. However, advances of UCO bank and Vijaya Bank have experienced rapid increase in advances in priority sector, of UCO and SB of Patiala in agricultural sector and of Union Bank of India and Bank of India in weaker section advances. Of priority sector, agricultural and weaker section advances, Canara Bank, Punjab National Bank constitute major share in these advances in 2001 as well as in 2005. Other banks constituting major share include Bank of Baroda, Bank of India and Union Bank of India. Regarding the deployment of credit in priority sector, table 5 and 6 shows that in 2001, S.B. of Travancore was deploying major share of NBC in priority sector loans (62.64 percent) while UCO Bank was deploying very small share (33.79 percent). In 2005, Bank of India remained at top position, While SBI remained at least position by deploying 51.33 percent and 36.81 percent of NBC in priority sector loans. In agricultural loans and in weaker section loans, Indian Overseas Bank remained at top position by deploying 18.87 percent and 12.43 of NBC in these sectors while UCO Bank remained at least position in agricultural loans and Corporation Bank in weaker section loans by deploying only 10.77 percent and 2.48 percent of NBC in these sectors in 2001. In 2005, PNB and Bank of India took the lead in agricultural and weaker section loans by deploying 18.98 percent. 11.86 percent of NBC in these sectors, while Corporation Bank remained again at least position in these sectors. Regarding targets fixed for priority sector loans, all the banks have performed well by exceeding the target (40 percent) except (United Bank of India and UCO Bank in 2001 and United Bank of India and SBI in 2005). However, there were short falls under sub-targets set for agriculture (18 percent) and weaker sector advances (10 percent) in 2001. In 2001, only 4 banks exceeded the target in agricultural loans, and 6 banks in weaker section loans. Position improved in 2005 as 13 banks were fullfilling targets in agricultural loans and 11 banks in weaker section loans due to special efforts made by Government of India. Government of India 192

set up Rural Infrastructure Development Fund under which commercial banks were required to deploy their short falls in priority sector/agricultural loans, and interest rates on RIDF deposits kept are inversely related to shortfall in lending to agricultural sector (Economic Survey, 2003-04) NPAs Trends in NPAs of various public sector banks indicate that out of 27 banks considered, 13 banks have experienced an increase in NPAs in priority sector advances, 12 banks in weaker section and only 7 banks in agricultural sector in 2005 as compared to 2001 NPAs of Oriental Bank of Commerce and Punjab & Sind Bank increased at rapid rate in priority as well as in agricultural sector, while in weaker section loans, SB of Patiala along with OBC experienced rapid increase. Regarding contribution of various banks in NPAs of public sector banks, Bank of Baroda along with Bank of India had major share in agriculture sector, while PNB had major share in priority sector in 2001 as well as in 2005 (Punjab & Sind Bank in 2005 only, while Central Bank in priority sector advances in 2001 only). In weaker section, Canara Bank along with Punjab & Sind Bank in 2001 and Bank of India along with Bank of Baroda in 2005 constituted major share in NPAs of public sector banks. Priority sector-wise analysis of NPAs of individual public sector banks given in Table 7 and 8 shows that in 2001, Bank of Maharashtra had highest (64.53 percent) NPAs in priority sector of which agriculture constituted 20.51 percent share while S.B. Travancore and Dena Bank had lowest share in NPAs in priority sector and agriculture (34.80 percent and 7.92 percent). In weaker section highest position is occupied by UCO Bank and lowest by OBC (having 48.19 percent and 3.27 percent NPAs). Out of 27 public sector banks, 14 banks had more than 45.43 percent (public sector average) of NPAs in priority sector. 13 banks in agriculture (above 13.87 percent average) and 11 banks in weaker section (above 22.51 percent average). In 2005, Indian Bank had 83.23 percent of NPAs in priority sector, while OBC had only 33.22 percent of NPAs. In agriculture, Punjab & Sind Bank occupied top position having 56.85 percent of NPAs, while Indian Overseas occupied least position with 7.10 percent of NPAs. In weaker section, NPAs ranged between 33.15 percent for Central Bank of India to 3.86 percent for S.B. Travancore. Of 27 public sector banks, 13 banks had more than 49.05 percent of NPA in priority sector (public sector average); 8 banks in agriculture (above 15.12 percent (average)); and 12 banks in weaker section (above 11.18 percent (average)). (b) PRIVATE SECTOR BANKS Advances Table 9 and 10 shows that private sector banks witnessed an increase in priority sector advances. Of the various private banks considered, HDFC and ICICI have experienced 193

rapid increase in advances in priority sector as well as in agricultural advances, while Development Credit Bank in weaker section in 2005 as compared to 2001. HDFC and ICICI constitute and major share in advances in priority sector and agricultural advances in 2001 as well as in 2005. However, in weaker sections, Federal Bank, Jammu & Kashmir Bank in 2001 as well as in 2005 constitute major share. Other banks constituting major share in weaker section loan include Karnataka Bank in 2001 and ICICI bank in 2005. Private inter-bank analysis shows that in 2001, Nanital Bank occupied top position by deploying 59.08 percent of credit in priority sector. In agriculture and weaker sector loans. Ganesh Bank remained at top position by deploying 27.71 percent and 10.01 percent of credit in these sectors (Position remained the same in 2005 of Nanital and Ganesh Bank). UTI Bank remained at bottom by deploying only 6.69 percent of credit in priority sector and 1.53 percent in agriculture; Development Credit Bank in weaker section by deploying only 0.08 percent credit. In 2005, Yes Bank ltd, Development Credit Bank Ltd. and Bank of Punjab remained at bottom by deploying only 10.17 percent, 5.07 percent and 0.02 percent of NBC in priority sector, agriculture and weaker section loans. Regarding the targets fixed for priority sector loans, out of 31 banks, only 19 banks are fulfilling the target of 40 percent in 2001 as well as in 2005. In agricultural and weaker section loans, only one bank viz Ganesh Bank is fulfilling the target of 18 percent and 10 percent in 2001 as well as in 2005. NPAs Trends in NPAs of private sectors banks given in table 11 and 12 indicate that in priority sector and in weaker sections, NPAs of United Western Bank, Bharat Overseas Bank and of Kasur Vysya Bank, while in agricultural sector, NPAs of ICICI Bank IndusInd Bank and of UTI Bank increased rapidly in 2005 as compared to 2001. Regarding the contribution of various banks in private sector NPAs, Tables 11 and 12 show that South India Bank constituted major share in priority sector advances, while Jammu & Kashmir bank and Federal Bank in weaker section in 2001 as well as in 2005. Other banks including major share in priority sector NPA of private sector include Vysya Bank and Karnataka Bank in 2001 and Federal and United Western Bank in 2005; in agriculture section, Federal Bank and Visya and Karnataka bank in 2001 and Lord Krishna, ICICI bank and South India Bank in 2005; in weaker sections, Vsya Bank in 2001 and South India Bank in 2005. Private inter-bank analysis of NPAs given in Tables 11 and 12 show that Nanital Bank and Sangli Bank occupied top positions in NPAs in priority sector and in agricultural loans in 2001 and well as in 2005. In weaker section, IDBI bank was at top position in 2001. Centurion Bank and Development Credit Bank remained at bottom in priority sector and in weaker section NPAs in 2001 as well as in 2005. In agricultural NPAs, Indus bank in 2001, while Development Credit Bank in 2005 were at lowest position. Number of banks having more than private sector average in priority sector and in agriculture NPAs increased and in weaker section decreased in 2005 as compared to 2001. In 2001, out of 31 private sector, 17 banks had more than 28.62 percent NPAs in priority sector, II bank more than 5.03 percent NPAs in agriculture sector while in 2005, 20 banks had above 24.87 percent NPAs in priority 194

sector and 14 banks had above 5.29 percent NPAs in agriculture sector. In weaker section NPAs, 10 banks had more than 19.72 percent NPAs, while in 2005, only 6 banks had more than 13.15 percent NPAs. III Empirical results given in Table 13 show that for public sector banks, there existed very high correlation between advances and NPA in agriculture and between advances and NPAs in weaker section. Advances to agriculture and weaker sections in public sector banks significantly and positively affected NPA in agriculture and weaker section in 2001 as well as in 2005 while priority sector advances positively but insignificantly affected NPAs in 2001 as well as in 2005. For Private Sector, in 2001, there existed very low correlation between advances & NPAs in agriculture, between advances and NPAs in priority sector. In 2005, low correlation between advances and NPAs in weaker sections and between advances and NPAs in priority sector. Simple regression results indicate that in 2001, advances to agriculture, weaker section and priority sector significantly and positively affected NPAs in these sectors, while in 2005, only advances to agriculture significantly and positively affected NPAs in agriculture. For weaker sections, advances positively and insignificantly affected NPAs and in priority sector, advances negatively and insignificantly affected NPAs in these sectors. Thus the study reveals that priority sector advances significantly affected NPAs in public sector, while for private sector, advance in priority sector negatively and insignificantly affected NPAs. Thus efforts should be made for efficient recovery of priority sector loans. For this purpose, there should be proper selection of borrower. should ensure proper selection of the borrowers. should ensure proper end-use, proper post sanction follow up, regular contact with borrower, regular monitoring of the accounted and hold recovery camps. 195

Table 1 Gross and Net Non- performing assets of Scheduled Commercial Group-wise (Amount in Rs.Crore) Gross NPAs Bank Group Year 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 Scheduled Commercia l 50,815 58,722 60,408 63,883 70,861 68717 64,786 58,300 (a) Public Sector (b) All Private Sector (i) Old Private Sector (ii) New Private Sector 45,653 (89.84) 3,186 (6.26) 2,794 (5.49) 392 (0.77) 51,710 (88.05) 4,655 (7.92) 3,784 (6.44) 871 (1.48) 53,033 (87.79) 4,761 (7.88) 3,815 (6.31) 947 (1.57) 54,773 (85.73) 6039 (9.45) 4,420 (6.91) 1,619 (2.53) 9 56,473 (79.69) 11,662 (16.45) 4,851 (6.84) 6,811 (9.61) 54,090 (78.71) 11,782 (17.14) 4,550 (6.62) 7,232 (10.52) 51,538 (79.55) 10,354 (15.98) 4,393 (6.78) 5,961 (9.20) 47,325 (81.17) 8,782 (15.06) 4,206 (7.21) 4,576 (7.84) (c) Foreign 1,976 2,357 2,614 3,071 2,726 2,845 2,894 2,192

in India Scheduled Commercia l (a) Public Sector (b) All Private Sector (i) Old Private Sector (ii) New Private Sector (c) Foreign in India (3.88) (4.03) (4.33) (4.82) (3.84) (4.14) (4.46) (3.75) Net NPAs 23,761 28,020 30,073 32,468 35,554 32,671 24,615 21,441 21, 232 63 72 1 6 1,8 1,5 29 66 2 4,211 943 332 11 66 2, 2, 6 8 2 6,187 031 393 38 55 3, 2, 6 8 27,9 69 9 0 3,69 2,77 27,9 58 6 3 6,67 3,01 929 3,66 3 24,8 67 2 0 2 6,88 2,74 4,14 18,8 60 7 0 7 4,85 2,14 2,71 1 6,642 151 851 292 800 920 92 808 6 48 4, 1, 2, 10

Source: RBI, Report on Trend and Progress of Banking in India (Various Issues) Note: Figures in parenthesis are percentage share. Scheduled Commercial (a) Public Sector (i)nationalised (ii)state Bank Group (b) Private Sector (i) Old Private Sector 98 Table 2 Percentage of Gross and Net NPAs to Total Assets of Scheduled Commercial Group-Wise 99 Gross NPAs to Total Assets 00 01 02 03 04 11 05 YEAR 98 99 Net NPAs to Total assets 6.4 6.2 5.5 4.9 4.60 4 3.30 2.50 3.0 2.9 2.7 2.5 2.30 1.90 1.20 0.90 7.03 6.71 5.95 5.32 4.89 4.21 3.50 2.74 3.27 3.14 2.94 2.72 2.42 1.93 1.28 0.99 7.24 6.83 6.00 5.45 5.21 4.66 3.86 2.98 3.48 3.26 3.15 2.95 2.69 2.16 1.40 0.96 6.67 6.52 5.88 5.11 4.39 3.48 2.91 2.49 2.89 2.94 2.60 2.34 2.00 1.58 1.09 1.01 3.93 4.48 3.61 3.70 4.36 3.97 2.82 2.05 2.29 2.83 2.30 2.26 2.49 2.32 1.32 0.97 5.06 5.78 5.22 5.22 5.20 4.34 3.64 3.15 2.84 3.56 3.27 3.27 3.23 2.61 1.77 1.39 (ii) New 1.52 2.26 1.6 2.06 3.90 3.76 2.42 1.55 1.12 1.59 1.08 1.18 2.10 2.16 1.10 0.78 00 01 02 03 04 1997-1998- 1999-2000- 2001-2002- 2003-2004- 1997-1998- 1999-2000- 2001-2002- 2003-2004- 05

Private Sector (c) Foreign 3.0 3.1 3.2 3.0 2.4 2.4 2.1 1.4 1.0 1.1 1.0 0.8 0.8 0.8 0.7 0.4 Source: RBI, Report on Trend and Progress of Banking in India (Various Issues) Scheduled Commercial (a) Public Sector (i)nationalise d (ii)state Bank Group (b) Private Sector 98 99 Table 3 Percentage of Gross and Net NPAs to Advances of Scheduled Commercial Group-Wise Gross NPAs to Gross Advances 00 01 1997-1998- 1999-2000- 2001-02 14.4 14.7 12.7 1.4 10.4 0 16.0 2 16.8 8 14.5 7 15.8 9 16.0 2 15.6 7 13.9 8 13.9 1 14.0 8 12.3 9 12.1 9 12.7 3 11.0 9 11.0 1 11.2 3 2002-03 2003-04 12 YEAR 2004 1997-05 -98 1998-99 Net NPAs to Net Advances 1999-00 2000-01 2001-02 2002-03 2003-04 2004 8.80 7.20 5.20 7.3 7.6 6.8 6.2 5.50 4.40 2.90 2.00 9.36 7.79 5.53 8.15 8.13 7.42 6.74 5.82 4.53 2.99 2.06 9.72 8.21 5.84 8.91 8.35 7.80 7.01 6.01 4.74 3.14 1.96 8.68 6.98 5.32 6.89 7.74 6.77 6.26 5.45 4.12 2.70 2.24 3.93 4.48 3.61 3.70 9.64 8.07 5.84 4.44 5.26 7.42 5.41 5.44 5.73 4.95 2.84 2.17 (i) Old 5.06 5.78 5.22 5.22 11.0 8.86 7.59 5.97 6.46 8.96 7.06 7.30 7.13 5.54 3.85 2.74-05

Private Sector 1 (ii) New 1.52 2.26 1.60 2.06 8.86 7.64 4.99 3.59 2.63 4.46 2.88 3.09 4.94 4.63 2.36 1.85 Private Sector (c) Foreign 6.4 7.6 7.0 6.8 5.4 5.3 4.6 2.8 2.2 2.9 2.4 1.9 1.9 1.8 1.5 0.9 Source: RBI, Report on Trend and Progress of Banking in India (Various Issues) (i) Public Sector (2001) (2005) (a) Nationalised (2001) (2005) Table 4 Priority Sector-Wise Advances and Non-Performing Assets of Public and Private Sector (Percent) Advances Non-Performing Assets Agriculture Sector (% to NBC) 15.65 15.68 16.41 Priority Sector (% to NBC) 42.99 43.23 43.4 45.72 Weaker Sections (% to NBC) 7.28 8.85 6.8 5.2 Agriculture Sector (% to Total) 13.87 15.21 13.21 15.58 Priority Sector (% to Total) 45.43 49.05 46.17 51.25 Weaker Sections (% to Total) 22.51 11.18 23.18 9.35 13

(b) State Bank Group (2001) (2005) (i) Private Sector (2001) (2005) (a) Old Private Sector (2001 ) (2005 ) (b) New Private Sector (2001 ) (2005 ) 16.8 13.32 7.12 12.09 9.15 10.60 5.56 11.09 45.6 38.59 38.15 43.33 43.4 40.4 33.67 37.16 8.39 10.08 1.70 1.20 3.11 2.9 0.65 0.74 Source: RBI, Report on Trend and Progress of Banking in India (Various Issues) 14.95 15.36 5.03 5.29 6.13 7.19 1.71 3.53 44.22 47.39 28.62 24.87 33.08 42.09 15.21 8.90 14.22 13.91 19.72 13.15 22.4 13.85 33.02 0.01 Table 5 Priority Sector-Wise Advances of Public Sector (2001) 14

Agriculture Sector Weaker Section Priority Sector Amount (Rs.Cr) % share of Bank % to NBC Amount (Rs.Cr) 15 % share of Bank % to NBC Amount (Rs.Cr) % share of Bank Allahabad Bank 1593.98 2.96 14.82 610.04 2.45 6.43 4192.4 2.86 44.21 Andhra Bank 1048.89 1.95 15.73 782.9 3.15 11.74 2774.02 1.89 41.6 Bank of Baroda 3032.81 5.64 16.62 1266.38 5.10 7.08 8762.5 5.97 48.98 Bank of India 3030.09 5.64 15.02 1026.8 4.13 5.09 8731 5.95 428 Bank of 1.52 1.58 1.88 Maharashtra 818.26 12.17 394.32 5.86 2763.44 41.09 Canara Bank 3510.76 6.52 15.91 1911.3 7.70 8.66 9049.85 6.17 41.02 Central Bank of 4.73 3.67 5.34 India 2544.91 13.87 912.39 5.12 7839.65 43.95 Corporation Bank 719.27 1.33 11.01 161.97 0.64 2.48 3178.39 2.16 48.64 Dena Bank 1158.99 2.15 13.01 263.14 1.06 3.64 3163.73 2.15 43.8 Indian Bank 1453.62 2.7 17.49 743.7 2.99 9.21 3282.77 2.23 40.65 Indian Overseas 2.99 4.27 2.87 Bank 1609 18.87 1060 12.43 4209 49.35 Oriental Bank of Commerce 1669.88 3.1 12.9 480.65 1.13 4.19 4819.16 3.28 41.7 Punjab National 7.1 9.62 8.26 Bank 3849.64 14.17 2399.93 8.83 12110.8 44.57 Punjab & Sind 1.58 1.1 1.55 Bank 849.99 1.99 268.95 5.51 2276.81 46.63 Syndicate Bank 1750 3.25 18.13 980 3.95 10.16 4662 3.18 48.31 Union Bank of India 2050.7 3.87 13.53 784.23 3.16 5.18 6759.14 4.61 44.61 % to NBC

United Bank of 1.42 1.57 1.63 India 765 11.99 390 6.11 2400 37.61 UCO Bank 959 1.78 10.77 439 1.71 4.93 3009 2.05 33.79 Vijaya Bank 751.45 1.39 15.67 350 1.41 7.31 2046.68 1.39 42.68 India 1498231 2.79 15.15 6847.25 27.6 7.68 35899.1 24.49 40.29 Bikaner and Jaipur 818.76 1.52 16.22 383.36 1.51 7.68 2309.27 1.02 46.7 Hyderabad 1214.3 2.20 18.19 495.5 1.99 7.42 2914.3 1.98 43.65 1.13 0.87 1.02 Indore 609.19 18.02 218.89 6.47 1496.54 44.26 1.06 1.73 1.12 Mysore 571.69 15.58 431.25 11.75 1642.93 44.78 2.11 2.6 1.77 Patiala 1136 17.58 647 10.1 2603.1 40.28 Saurashtra 614 1.11 17.07 144.57 0.58 4.02 1532.88 1.04 42.61 Travancore 572.62 1.10 16.94 411.05 1.65 12.16 2117.38 1.44 62.64 Source: RBI, Report on Trend and Progress of Banking in India (2001) Table 6 Priority Sector-Wise Advances of Public Sector (2005) Agriculture Sector Weaker Section Priority Sector Amount (Rs.Cr) % share of Bank % to NBC Amount(Rs.Cr) % share 16 % to NBC Amount (Rs.Cr) % share of Bank % to NBC

of Bank Allahabad Bank 3913.1 3.47 18.74 2210.3 3.4 10.5 9592.34 3.1 45.94 Andhra Bank 3077.56 2.73 18.42 1768.99 2.7 10.59 7070.29 2.2 42.31 4.06 3.5 13524.1 4.4 Bank of Baroda 4574.73 15.45 2278.88 7.69 1 45.67 Bank of India 7044 6.26 18.68 4086 6.4 11.82 1782 5.7 51.33 Bank of Maharashtra 1826.64 1.62 13.36 575 0.9 4.62 5306.41 1.7 42.67 Canara Bank 8782 7.80 15.28 3350 5.2 5.83 24777 7.9 43.11 Central Bank of India 5759.74 5.12 18.24 2927.65 4.6 10.32 14272.8 4.6 50.31 Corporation Bank 1169.71 1.03 7.41 505.46 0.7 3.2 6579.24 2.1 41.66 Dena Bank 1748.71 1.55 11.66 376.25 0.58 3.36 4754.73 1.5 42.66 Indian Bank 3191.7 2.83 19.08 1809.83 2.8 10.82 8105.41 2.6 48.46 3.71 4.1 10449.6 3.3 Indian Overseas Bank 4178.97 18.05 258.57 11.25 4 45.26 Oriental Bank of 3.12 1.7 11081.4 3.5 Comm 3518.42 11.7 1093.59 4.6 4 46.61 11660.8 10.36 10.1 26468.9 8.5 Punjab National Bank 8 18.98 6464.58 11.32 3 46.34 Punjab & Sind Bank 1263.88 1.12 18.19 465.12 0.7 6.98 3096.41 0.9 46.44 3.67 3.6 10588.5 3.4 Syndicate Bank 4138.15 18.1 2313.52 10.12 2 46.32 5.4 4.3 18588.6 5.9 Union Bank of India 6161.21 16.1 2755.16 7.27 7 49.08 United Bank of India 1549 1.3 12.82 668 1.0 5.8 4509 1.4 39.15 UCO Bank 3783 3.3 14.15 1201.82 1.8 4.5 10980 3.5 41.07 17

Vijaya Bank 1827.31 1.6 13.18 844.22 1.3 6.05 616.38 1.9 44.29 India 20526.3 18.2 11.99 19732.28 31 11.53 6267.83 20.2 36.61 Bikaner and Jaipur 2146.86 1.9 18.16 1087.75 1.7 9.2 5327.07 1.7 45.06 1.6 1.2 1.9 Hyderabad 1896.47 13.05 777.47 5.35 6134.2 42.21 Indore 1666.43 1.4 18.27 496.51 0.78 5.44 4083.04 1.3 44.77 Mysore 1227.8 1.0 14.88 843.16 1.3 10.22 3323.47 1.1 40.28 Patiala 2891 2.5 18.95 1489 2.3 10.03 6104 1.9 41.11 1.1 0.3 0.9 Saurashtra 1209.82 18.96 247.59 3.88 2912.2 45.61 Travancore 1731.55 1.5 12.46 525.16 0.8 3.78 5933.79 1.9 42.69 Source: RBI, Report on Trend and Progress of Banking in India (2005) Table 7 Priority Sector-Wise Non-Performing Assets of Public Sector (2001) Agriculture Sector Weaker Section Priority Sector 18

Amount (Rs.Cr) % share of Bank % to Total Amount (Rs.Cr) 19 % share of Bank % to Total Amount (Rs.Cr) % share of Bank % to Total Allahabad Bank 183.03 2.48 10.05 111.86 1.98 17.36 685.39 2.83 37.63 Andhra Bank 53 0.71 11.27 135.93 2.40 19.64 225 0.93 47.86 Bank of Baroda 652.56 8.83 16.59 328.11 5.85 25.91 1748.41 7.23 44.72 Bank of India 438.79 5.93 13.78 188.46 3.35 20.6 1285.55 5.31 40.38 Bank of Maharashtra 179.83 2.42 20.51 108.78 1.92 26.24 565.67 2.33 64.53 Canara Bank 366.17 4.96 16.56 411.43 7.33 24.37 1334.5 5.52 60.37 Central Bank of India 346.78 4.68 10.66 249.83 4.44 29.81 1583.6 6.52 48.68 Corporation Bank 66.97 0.89 13.82 41.03 0.73 25.33 223.83 0.92 46.18 Dena Bank 152.66 2.06 7.92 - - - 686.71 2.83 35.61 Indian Bank 227.54 3.07 11.22 155.55 2.76 22.76 80934 3.34 39.92 Indian Overseas Bank 178.11 2.41 11.65 112.4 1.99 10.46 631 2.61 41.26 Oriental Bank of 1.43 0.26 1.33 Comm. 106.66 18.21 15.7 3.27 322.34 55.03 Punjab National Bank 384.81 1.15 11.12 360.2 6.42 14.84 1419.98 1.66 41 Punjab & Sind Bank 85.23 5.2 8.31 32.77 0.57 12.18 401.2 5.87 39 Syndicate Bank 156.75 2.11 14.63 133.43 2.37 13.15 561.15 2.32 52.37 Union Bank of India 280.91 2.43 13.66 272.15 4.08 34.7 1087 1.47 52.9 United Bank of India 211.09 3.79 14.96 202.15 4.85 44.89 714 4.49 50.65 UCO Bank 180.96 0.14 16.72 229.45 3.60 48.19 599 2.95 55.36 Vijaya Bank 105.36 1.42 17.71 - - - 342.64 1.41 57.59 India 2351.18 31.86 15.2 2144 38.25 27.52 6876.32 28.46 44.44

Bikaner and Jaipur 112.97 1.5 15.8 50.21 0.89 12.34 290.29 1.20 40.6 2.15 2.15 1.89 Hyderabad 159.38 14.82 121 19.72 457.34 42.53 Indore 62.34 0.84 19.17 51.56 0.90 26.62 178 0.74 55.08 Mysore 96.2 1.30 16.56 64 1.14 14.84 275.22 1.13 47.37 Patiala 87.85 1.17 12.64 30.26 0.53 4.63 280.11 1.15 40.32 1.05 0.17 1.26 Saurashtra 78.69 13.84 10.23 7.08 306.21 53.86 0.94 0.80 1.08 Travancore 70.83 9.35 45.22 11 263.75 34.8 Source: RBI, Report on Trend and Progress of Banking in India (2001) Table 8 Priority Sector-Wise Non-Performing Assets of Public Sector (2005) Agriculture Sector Weaker Section Priority Sector Amount(Rs.Cr) % share of Bank % to Total Amount (Rs.Cr) 20 % share of Bank % to Total Amount(Rs.Cr) % share of Bank Allahabad Bank 256.19 3.5 19.5 280.84 4.8 12.44 773.67 33 60.24 Andhra Bank 44.57 0.16 10.11 80.74 1.3 4.1 240.39 10.9 54.52 Bank of Baroda 445.17 6 14.08 285.29 4.9 11.62 1380.2 5.8 43.56 Bank of India 514.45 7 17.88 385.81 6.6 20.44 1492.14 6.3 5185 Bank of 2 2.0 2.4 Maharashtra 174.49 18.14 117.72 17.56 564.33 58.67 % to Total

Canara Bank 244.07 3 10.34 215.9 3.0 6.45 990.89 4.2 41.96 Central Bank of 5 3.6 6 India 356.34 13.59 209.68 33.15 1585.44 60.48 Corporation Bank 64.27 0.8 9.93 32.7 0.5 7.87 320.09 1.3 49.45 Dena Bank 148.3 2 12.92 68.7 1.2 15.6 533.18 2 46.46 Indian Bank 130.47 1.7 17.58 175.05 3.0 20.05 617.48 2.6 83.23 Indian Overseas 1.3 0.6 2.7 Bank 96.76 7.1 40.06 1.5 633.3 46.5 Oriental Bank of 2 0.9 3.5 Comm. 179.46 7.14 54.77 7.67 834.74 33.22 Punjab National 16.2-6 Bank 1180.09 56.85 - - 1471.32 70.85 Punjab & Sind Bank 354.46 5 9.47 251.04 4.0 4.5 1740.76 7 46.53 Syndicate Bank 158.25 2 11.8 217.48 3.7 9.4 747.44 3 52.28 Union Bank of India 147.62 2 10.7 132.96 2.3 13.2 609.3 3 44.17 United Bank of 4 3.6 2.6 India 279.28 13.57 210.86 18.44 1090.57 52.99 UCO Bank 151.16 2 20.81 67 1.3 12.88 541.44 4 74.54 Vijaya Bank 53.86 0.7 12.48 54.19 0.9 2.78 213.78 2.3 49.53 India 1912.68 26 16.42 2312.7 40.0 25.24 560.68 0.9 48.12 Bikaner and Jaipur 13.7 0.17 3.43 99.61 1.7 8.89 190.8 24 47.76 0.3 2.5 0.8 Hyderabad 28.14 5.09 146 25 194.61 35.17 0.5 0.6 0.8 Indore 37.39 12.32 35.91 7.17 142.11 46.83 21

Mysore 49.24 0.6 11.84 42.16 0.7 5 182.32 0.6 43.89 Patiala 166.78 2 25.54 153.91 2.6 10.11 371.05 1.5 56.81 Saurashtra 16.96 0.2 9.23 31.72 0.5 2.75 65.21 0.2 35.47 Travancore 49.3 0.6 7.56 49.3 0.8 0.86 266.11 1.2 40.8 Source: RBI, Report on Trend and Progress of Banking in India (2005) Table 9 Priority Sector-wise Advances of Private Sector (2001) Agriculture Sector Weaker Section Priority Sector Amount(Rs.Cr) % share of Bank % to NBC 22 Amount (Rs.Cr) % share of Bank 6.3 % to NBC Amount(Rs.Cr) % share of Bank 3.1 Bank of Rajasthan 4.4 ltd. 241.7 12.83 61.64 3.27 663.32 35.21 Benaras State Bank 36.94 0.66 14.67 2.99 0.2 1.19 138.55 0.64 55.02 Bharat Overseas 0.68 0.4 1.2 Bank 37.91 7.77 4.98 1.02 259.18 53.24 Cath. Syrian Bank 0.59 2.0 1.6 ltd. 32.08 4.28 20.4 2.72 354.35 47.29 City Union Bank 56.31 1 7.05 40.94 4.1 5.13 327.77 1.5 41.04 % to NBC

Ltd. Dev. Credit Bank 4.1 0.21 3.8 Ltd. 221.6 11.15 1.71 0.08 830.49 41.74 Dhanalak. Bank 0.63 1.5 1.4 Ltd. 34.71 4.67 14.43 1.94 313.29 42.17 Federal Bank Ltd. 331.5 6.1 13.31 162.57 16.9 6.53 1471.96 6.8 59.08 Ganesh Bank Of Kurundwad Ltd. 23.36 0.42 27.71 8.44 0.8 10.01 40.8 0.18 48.49 J & K Bank Ltd. 117.8 2.1 3.19 133.94 13.8 3.63 1400.45 6.5 37.94 Karnataka Bank 5.4 11.2 4.7 Ltd. 295.5 12.36 107.49 4.49 1030.1 43.07 Karur Vysya Bank 3.1 8.1 3.9 Ltd. 163.7 7.8 78.4 3.75 861.78 41.18 Lakshmi Vilas Bank 2.8 5.5 2.7 Ltd. 156.6 11.78 53.45 4.02 591.06 44.48 Lord Krishna Bank 1.0 0.2 0.75 Ltd. 58.32 13.82 2.68 0.64 162.75 38.57 Nainital Bank Ltd. 19.62 0.35 15.65 7.38 0.7 5.89 70.74 0.32 56.42 Nedungadi Bank 0.90 0.4 1.4 Ltd. 49.43 6.54 4.69 0.62 312.39 41.35 Ratnakar Bank Ltd. 23.87 0.43 9.83 3.37 0.3 1.39 88.07 0.4 36.26 Sangli Bank Ltd. 73.52 1.3 13.62 21.29 2.2 3.94 181.05 0.83 33.54 SBI Commercial & International Bank 0.59-0.25 Ltd. 32.69 16.06 - - 56.1 27.56 South Indian Bank 107.5 1.9 7.1 45.95 4.6 3.03 846.48 3.9 55.85 23

Ltd. Tamilnad Mer. 2.3 2.5 3.1 Bank Ltd. 125.9 8.13 24.69 1.59 663.29 42.8 Uni. Western Bank 2.6 5.2 4.5 Ltd 142.5 5.86 49.44 2.04 981.43 40.41 Vysya Bank Ltd. 517.5 9.5 12.72 67.12 6.9 1.65 1516.89 7.0 37.27 Bank of Punjab Ltd. 202.5 3.7 13.5 - - - 471.15 2.2 31.22 Centurion Bank 3.9-2.9 Ltd. 213.9 11.74 - - 626.05 34.35 Global Trust Bank 347.1 6.4 8.84 - - - 1603.21 7.4 40.82 HDFC Bank 538.9 9.9 15.66 - - - 1614.49 7.4 46.92 ICICI Bank 712.7 13.2 11.3 40.95 4.1 0.65 2318.79 10.7 36.76 IDBI Bank 160 2.9 11.32 - - - 637.57 2.9 44.86 IndusInd Bank Ltd. 254.7 4.7 8.44 - - - 834.52 3.8 27.63 UTI Bank Ltd. 63.9 1.2 1.52 - - - 280.83 1.3 6.69 Source: RBI, Report on Trend and Progress of Banking in India (2001) Table 10 Priority Sector-wise Advances of Private Sector (2005) Agriculture Sector Weaker Section Priority Sector Amount (Rs.Cr) Bank of Rajasthan ltd. 343.54 % share of Bank 1.59 % to NBC Amount (Rs.Cr) 6.83 0.05 % share of Bank.002 % to NBC Amount(Rs.Cr) % share of Bank 0.15-1047.79 % to NBC 39.14 24

Bharat Overseas 0.40 0.57 0.6 Bank 86.97 7.11 11.88 1.09 469.55 43.05 Cath. Syrian Bank 0.59 1.7 1.2 ltd. 127 5.43 34 1.45 840 35.93 City Union Bank Ltd. 139.7 0.64 6.78 28 1.4 1.36 824.16 1.1 40.02 Dev. Credit Bank 0.71 0.75 1.1 Ltd. 153.7 5.07 14.05 0.67 788.76 36.32 Dhanalak. Bank Ltd. 147.5 0.68 10.35 38.77 2.0 2.72 455.76 0.6 31.97 Federal Bank Ltd. 604.8 2.8 8.22 232.48 12 3.16 296.98 4.2 40.28 Ganesh Bank Of Kurundwad Ltd. 31.47 0.14 26.95 11.82 0.5 10.72 63.4 0.09 54.29 ING Vysya Bank 4.06 13.8 4.8 Ltd. 872.66 10.4 264.92 3.16 3380.19 40.28 J & K Bank Ltd. 754.72 3.51 7.29 262.02 13.6 3.04 3467.4 4.9 40.16 Karnataka Bank 2.91 6.5 3.2 Ltd. 625 10.27 125.82 2.07 2279.53 37.45 Karur Vysya Bank 2.93 9.5 2.56 Ltd. 631 13.59 182.18 4.12 1782.31 40.3 Lakshmi Vilas Bank 1.42 5.9 1.28 Ltd. 305.01 14.19 114.51 5.33 894.54 41.62 Lord Krishna Bank 0.91 0.15 0.85 Ltd. 196.21 7.93 3.85 0.29 590.93 44.18 Nainital Bank Ltd. 40.1 0.18 11.04 11.2 0.5 3.08 205.91 0.29 56.69 Ratnakar Bank Ltd. 46.32 0.21 10.45 5.92 0.2 0.98 160.19 0.23 37.95 Sangli Bank Ltd. 79.19 0.36 10.33 17.46 0.8 2.28 173.75 0.24 22.66 SBI Commercial & 47.64 13.88 - - 49.81 30.87 25

International Bank 0.21-0.07 Ltd. South Indian Bank 2.51 8.9 3.26 Ltd. 539.72 10.72 172.03 3.42 2262.69 44.96 Tamilnad Mer. Bank 1.90 3.3 1.89 Ltd. 408.41 14.51 63.74 2.39 1316.48 49.32 Uni. Western Bank 1.83 9.7 2.31 Ltd 395.56 10.38 186.42 4.84 1606.07 41.74 Bank of Punjab Ltd. 415.25 1.93 11.32 0.42 0.02 0.02 848.74 1.22 35.9 Centurion Bank Ltd. 243.13 1.13 11.73 68.49 1.04 3.39 623.14 0.89 30.82 HDFC Bank Ltd. 4202.52 19.5 14.15 20.48 1.2 0.1 8560.43 12.25 41.26 ICICI Bank Ltd. 6646.15 30.9 17.25 24.36 1.2 0.07 1910.659 27.53 54.49 IDBI Bank Ltd. 824 3.8 6.28 - - - 4286.41 6.17 44.55 IndusInd Bank Ltd. 572.68 2.6 7.16 - - - 2793 4.02 34.94 Kotak Mahind. Bank 1.8-2.19 Ltd. 387 9.93 - - 1521.57 44.91 UTI Bank Ltd. 1605 7.47 10.95 18.9 0.94 0.13 5953.58 8.57 40.99 Yes Bank Ltd. - - - - - - 65 0.09 10.17 Source: RBI, Report on Trend and Progress of Banking in India (2005) Table 11 Priority Sector-wise Non-Performing Assets of Private Sector (2001) Agriculture Sector Weaker Section Priority Sector Amount (Rs.Cr) % share of Bank % to Total Amount (Rs.Cr) 26 % share of % to Total Amount (Rs.Cr) % share of % to Total

Bank of Rajasthan Ltd. 18.9 Benaras State Bank Ltd. 1.28 Bharat Overseas Bank 2.46 Cath. Syrian Bank Ltd. 1.14 5.59 0.39 0.76 1.59 5.3 18.49 1.53 2.84 2.93 0.84 2.73 12.37 27 Bank 9.67 1.07 0.45 6.45 30.73 68.05 94.98 24.59 16.87 15.08 67.23 91.59 City Union Bank Ltd. 6.55 2.03 5.14 2.96 1.58 7.22 45.18 2.45 35.95 Dev. Credit Bank Ltd. 5.9 1.83 3.58 0.01 0.00 0.43 79.71 4.3 48.3 Dhanalak. Bank Ltd. 0.45 0.13 0.33 0.46 0.24 3.19 36.24 1.96 26.86 Federal Bank Ltd. 56.44 17.52 8.28 29.84 15.59 18.36 218.08 11.88 31.98 Ganesh Bank Of Kurundwad Ltd. 1.08 0.33 9.09 0.44 0.23 5.61 4.35 0.21 36.63 J & K Bank Ltd. 13.89 4.31 5.7 41.51 22.31 30.99 126.33 6.87 51.86 Karnataka Bank Ltd. 39.49 12.26 9.7 10.7 5.37 9.95 137.29 7.47 33.74 Karur Vysya Bank 1.08 1.07 2.56 Ltd. 3.49 2.12 2.01 2.56 47.56 28.88 Lakshmi Vilas Bank 2.08 0.90 2.39 Ltd. 6.72 4.57 1.68 3.14 44.1 30.02 Lord Krishna Bank 0.92 0.24 1.19 Ltd. 2.98 2.15 0.45 16.19 22.21 16.03 Nainital Bank Ltd. 1.69 0.52 17.02 0.88 0.47 11.92 8.22 0.43 82.78 Nedungadi Bank Ltd. 9.76 3.03 3.21 2.28 1.2 48.61 114.98 6.21 37.8 Ratnakar Bank Ltd. 2.18 0.67 7.75 0.51 0.27 15.27 13.35 0.70 47.48 Bank 3.7 1.34 0.81 4.96 19.08 29.49 17.96 48.59

Sangli Bank Ltd. - - - 5.29 2.8 24.85 7.88 0.38 7.98 SBI Commercial & International Bank 5.98-2.34 Ltd. 19.28 25.28 - - 43.1 56.51 South Indian Bank 6.82 6.98 7.41 Ltd. 21.97 5.5 13.61 29.62 136.63 34.21 Tamilnad Mer. Bank 2.15 1.2 4.14 Ltd. 7.89 4.48 2.25 13 6.3 43.39 Uni. Western Bank 4.72 3.37 3.7 Ltd 15.29 4.5 6.27 12.61 68.56 20.19 Vysya Bank Ltd. 52.29 16.23 11.77 20.06 11.07 29.88 161.4 8.77 36.33 Bank of Punjab Ltd. 0.86 0.26 1.45 - - 10 16.41 0.87 27.64 Centurion Bank Ltd. - - - - - - 0.49.00 0.32 Global Trust Bank 6.53 2.01 2.74 - - - 24.51 1.3 10.28 HDFC Bank - - - - - - 13.47 0.7 9.73 ICICI Bank 15.63 4.74 3.82 11.13 5.91 27.18 105.32 5.72 25.73 IDBI Bank - - - 0.01-61.9 - - - IndusInd Bank Ltd. 0.83 0.25 0.32 - - - 53.34 2.88 20.33 UTI Bank Ltd. 3.5 1.08 1.61 - - - 20.69 1.58 13.67 Source: RBI, Report on Trend and Progress of Banking in India (2005) Table 12 Priority Sector-wise Non-Performing Assets of Private Sector (2005) Agriculture Sector Weaker Section Priority Sector Amount % share of % to Amount % % to Total Amount % % to Total 28

(Rs.Cr) Bank Total (Rs.Cr) share of Bank Bank of Rajasthan 2.36 6 ltd. 11.98 7.53 13.09 Bharat Overseas 1.07 1.4 Bank 5.31 6.78 3 Cath. Syrian Bank 1.29 4.6 ltd. 6.03 3.55 9.65 29 (Rs.Cr) 27.39 47.78 19.82 3475 28.7 89.11 share of Bank 2.14 City Union Bank Ltd. 2.98 0.43 2.45 0.79 0.3 2.83 40.37 1.82 33.19 Dhanalak. Bank Ltd. 0.96 0.20 0.76-48.18 2.19 38.39 Federal Bank Ltd. 30.94 6.45 4.56 23.94 11.1 9.1 277.85 12.65 40.9 Ganesh Bank Of Kurundwad Ltd. 2.15 0.43 11.27 - - - 7.97 0.31 41.79 ING Vysya Bank Ltd. 19.03 4.08 9.8 2.02 9 5.74 77.47 3.54 39.88 J & K Bank Ltd. 14.83 3.01 4.67 40.31 19 12.78 175.29 7.91 55.25 Karnataka Bank Ltd. 14.16 8.60 8 7.6 3 8.77 180.17 8.22 35.91 Karur Vysya Bank 1.07 4 4.34 Ltd. 5.111 2.11 10.97 5.88 95.55 39.5 Lakshmi Vilas Bank 2.15 0.4 4.06 Ltd. 10.42 5.56 1.5 1.72 89.7 47.85 Lord Krishna Bank 18.06 0.5 Ltd. 0.84 0.93 12.94 14.28 Nainital Bank Ltd. 1.1 0.21 11.64 1.13 0.4 10.09 5.96 0.22 62.93 Ratnakar Bank Ltd. 2.34 0.43 5.08 1.52 0.4 27.19 20.65 0.9 44.88 Sangli Bank Ltd. 18.5 3.87 24.3-37.07 1.69 48.69 1.58 4.07 30.01 44.36 52.49

SBI Commercial & International Bank 2.58-0.59 Ltd. 12.91 16.06 - - 13.49 16.77 South Indian Bank 13.33 28 8.36 Ltd. 62.2 17.11 60.63 35.24 183.47 50.12 Tamilnad Mer. Bank 3.87 0.4 5.75 Ltd. 18 5.89 1.36 9.23 126.65 39.44 Uni. Western Bank 7.95 14 9.92 Ltd 37.13 8.25 30.44 15.65 217.48 48.31 Bank of Punjab Ltd. 2.8 0.43 1.117 - - - 15.6 0.68 6.51 Centurion Bank Ltd. - - - - - - 4.8 0.18 3.07 Dev.Credit Bank Ltd. 0.21 0.4 0.07 0.01 0.004 0.75 62.91 2.83 20.24 HDFC Bank Ltd. - - - - - - 19.13 0.86 4.48 ICICI Bank Ltd. 82.28 17.63 2.97 - - - 136 6.21 4.91 IndusInd Bank Ltd. 48.46 10.32 15.12 - - - 93.98 4.25 29.32 Kotak Mahindra 0.21-0.36 Bank Ltd. 1.37 4.66 - - 8.16 27.84 UTI Bank Ltd. 26.03 5.59 8.37 - - - 65.97 2.93 21.2 Yes Bank Ltd. - - - - - - - - - Source: RBI, Report on Trend and Progress of Banking in India (2005) Table 13 Results of Regression Analysis Year 2001 30

Public Sector Private Sector 1. ; ; (6.86) (14.96) * (1.02) (3.28) * 2. ; 3. ; (0.92) (0.08) (-2.68) (19.3) * ; (-0.04) (6.42) * ; (1.64) (3.2)* Year 2005 Public Sector 1. ; (-2.3) (11.47)* 2. ; (-1.02) (24.9)* 3. ; (2.72) (2.26) Private Sector ; (3.06) (4.1)* ; (1.4) (1.25) ; (1.64) (-0.59)* Note : Xx = Advances in agriculture sector Yx = NPAs in agriculture sector Xy = Advances in weaker section Yy = NPAs in weaker section Xz = Advances in priority sector Yz = NPAs in priority sector 31

REFERENCES Reserve Bank of India, Report on Trend and Progress of Banking in India(various issues),rbi;mumbai. Reserve Bank of India, Report on Currency and Finance(various issues). Government of India,Economic Survey,2003. 32